Above is Gox price as of ~9:30 PM (GMT+2). Still above the previous low, but dipping below the 38.2% retracement level. Note the low volume.
What’s leading us down? I suspect the trading fees implemented on BTC China, as documented elsewhere on this site. 0.3% fees are still cut-rate by Western standards, but the Chinese may have taken it as a negative sign. I believe that free services are common to China’s highly competitive, winner-take-all economy.
And here’s Bitcoin price in China; note that volume remains high and the Bitcoin price appears weaker on this side. I believe BTC China is acting as the leading market, setting a bearish tone which is dragging other exchanges down. Note that Gox displays a double top, whereas BTC China has a clear downwards trendline from a single peak.
As I write, the bleeding has continued on BTC China, with price now threatening the previous low at ~¥3820. Below this 50% level, things get serious. The big question is if the Chinese Bitcoin price bounces from here.
On the Gox side, next support level for the Bitcoin price will be the 50% Fib / ~$600 previous low level. Certainly, more price support seen outside of China.
The Bitcoin price is undeniably under pressure here, and how it performs close to and at these key 50% levels on the respective exchanges is a real test. Be ready for anything.
This is a part of the Cryptocurrency Investment Club by CryptoCoinsNews.com.
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